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Klobuchar Joins President Obama for the Fraud Enforcement and Recovery Act Bill Signing

Says legislation will protect taxpayers and crack down on financial fraud

May 20, 2009

Washington, D.C. – Today, U.S. Senator Amy Klobuchar joined President Obama at the White House as he signed the Fraud Enforcement and Recovery Act into law.  Klobuchar, a member of the Senate Judiciary Committee, was a sponsor of this bipartisan legislation in the Senate and was a leading advocate for its passage. 

This legislation will provide the tools and resources that law enforcement officials need to crack down on financial and mortgage fraud and protect taxpayers. The Department of Justice estimates that for every dollar spent prosecuting fraud, victims and the U.S. Government receive $20 in restitution and fines.

“After years of lax oversight and investigation in Washington, we are beginning to see many financial crimes come to light,” said Klobuchar.  “We must hold people accountable for their crimes, whether it’s robbing a convenience store or bilking investors out of millions of dollars.”

“As a former prosecutor, I know how important it is that our law enforcement agencies have the tools and resources they need to effectively investigate and prosecute these financial crimes,” said Klobuchar.  “The Fraud Enforcement and Recovery Act will make sure that our law enforcement officials have what they need to aggressively go after wrong-doers and to help stop financial fraud before it happens.”

In the past three years, the number of criminal mortgage fraud investigations opened by the FBI has doubled.  Within the past six years, there has been a tenfold increase in the number of reports filed with the Treasury Department alleging mortgage fraud.  Yet, the FBI doesn’t have enough staff to investigate the 5,000 plus fraud allegations that the Treasury Department receives every month. 

The Fraud Enforcement and Recovery Act authorizes $165 million a year for the Justice Department to hire fraud prosecutors and investigators, including funds for the FBI to bring on an additional 190 special agents and more than 200 professional staff and forensic analysts to rebuild its white-collar investigation program.  Additionally, the Act provides resources for the FBI to nearly double the number of mortgage fraud task forces nationwide that target fraud in the hardest hit areas of our country. 

The Act also strengthens the whole network of agencies that are involved in prosecuting white-collar crimes.  It provides resources for additional staff at the U.S. Attorneys’ Offices and the Securities and Exchange Commission and it includes additional resources for the Criminal, Civil and Tax Divisions at the Justice Department to provide special litigation and investigative support.

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